Air Products 3Q profit meets analysts' estimates
LEHIGH VALLEY, Pa. (AP) - Air Products said Tuesday that its fiscal third-quarter net income fell 41 percent from results a year ago that included a gain on an asset sale. But the results met analysts' estimates, and revenue topped Wall Street's view.
The company, which sells gases, chemicals and other equipment to industrial customers, also narrowed its full-year earnings forecast.
Air Products earned $288.4 million, or $1.36 per share, for the three months ended June 30. That's down from $484.5 million, or $2.26 per share, a year earlier.
This met the expectations of analysts polled by FactSet.
The year-ago period included an $85.9 million gain on previously held equity interest.
The current quarter also contended with some higher expenses, as interest expense, research and development costs and selling and administrative expenses rose.
Revenue increased 9 percent $2.55 billion from $2.34 billion, bolstered by acquisitions and higher energy rates. Wall Street forecast $2.51 billion.
Sales of merchant gases climbed 18 percent, while sales of tonnage gases rose 10 percent. Equipment and energy sales also increased, while sales of electronics and performance materials fell 6 percent mostly due to lower electronics process materials volumes and equipment sales.
Air Products & Chemicals Inc. now expects full-year earnings between $5.47 and $5.53 per share. It previously predicted earnings in a range of $5.45 to $5.60 per share. Analysts foresee earnings of $5.50 per share.
For the fourth quarter, the company anticipates adjusted earnings from continuing operations of $1.44 to $1.50 per share. Wall Street is looking for earnings of $1.47 per share.